Farmington unlikely to get Victor school tax break for waste water plant

Farmington officials had hoped the Victor Central School District Board of Education would give them a $279,000 pass on annual school taxes next year, or at least a portion of that. But after hearing from School Business Official Mike Vistocco at a Feb. 13 school board meeting, that’s not likely to happen.

VICTOR — Farmington officials had hoped the Victor Central School District Board of Education would give them a $279,000 pass on annual school taxes next year, or at least a portion of that. But after hearing from School Business Official Mike Vistocco at a Feb. 13 school board meeting, that’s not likely to happen. On Dec. 12, Farmington officials, on behalf of the Farmington Sewer District and its residents, presented a formal request that a full or partial exemption from school taxes be granted by the Board of Education. The practice is not unprecedented, Farmington Supervisor Ted Fafinski said: The Town of Victor and Ontario County both granted ongoing tax exemption for Farmington’s plant and associated pump station and apertures several years ago. Fafinski maintains that without the $18.7 million waste water treatment plant (WWTP) expansion completed by Farmington in 2008 — which services many residents in the Victor school district — the school’s new $28.7 million capital project would not have been possible. But at the Feb. 13 Board of Education meeting, Vistocco countered with facts and figures from an entirely different perspective. Board members will review his report before they make a final determination at a regular meeting on March 13. Vistocco told school board members that the nearly $280,000 loss, if the tax exemption were granted, would translate into an approximate property tax rate increase for all Victor school district residents of .76 percent. The burden to make up the lost $280,000 would be shifted to the school district residents, he said. Further, only about 50 percent of Victor school district residents are in the Farmington WWTP district, he said. Victor School Superintendent Dawn Santiago-Marullo said budget concerns will drive the recommendation she makes to the Board of Education. “The district cannot absorb a loss of any revenues, given the recent cuts in state aid, the tax cap on the levy and our growing student population,” said Santiago-Marullo. “We have cut our programs and services as far as we can and still educate our students for their futures. If we can’t cut the budget to make the exemption work, then we would need to pass the debt on to all of the VCS property taxpayers.” Fafinski suggested BOE members consider phasing in partial exemption over a four- to five-year period to help the school district ease into the change. A 75 percent exemption at 10 percent per year over a 10-year period would minimize the financial impact, he said. “A partial exemption lowers the number but still puts us in the position of raising taxes for our taxpayers, most of whom do not receive services from the treatment plant,” said Santiago-Marullo. “My position is that the folks who receive the benefit of the WWTP are the ones who should pay for the services.” An estimated 82.28 percent of the Farmington sewer district property owners are in the Victor school district, said Fafinski, who asserts that these residents are essentially paying taxes twice. “They are paying school tax on their individual properties, and they are paying through their quarterly sewer billings the $279,000 school tax on the treatment plant, Plaster Mill Road pump station and associated apertures,” said Fafinski. Vistocco maintains that user fees assessed by the special district pay for the WWTP, and school taxes pay for schools. There’s no duplicative taxation, as the two taxes are paid for different things, he said. Vistocco cited economic challenges the district has faced in recent years, including a rapidly growing student population, a more than $45 million loss in foundation aid from New York state since 2008-2009, and costly state and federal mandates. “While the school district recognizes the valuable contribution that the Farmington WWTP provides to our community, it seems more appropriate that the people who use the system pay the taxes and fees necessary to support the waste water treatment facility’s operations and future capital improvements,” Vistocco concluded in his report to school board members. “Given the millions of dollars in reductions the VCSD has faced in recent years, a reduction of $280000 of tax revenue would not be prudent at this time.” The Victor Board of Education will vote at its regular meeting on March 13, Santiago-Marullo said.